Business leaders and wealthy residents are threatening to leave New York City if leftist candidate Zohran Mamdani wins the mayoral race, due to his proposed policies like taxing the rich and rent freezes. Historically, such threats have not resulted in mass departures, as economic and social factors influence relocation decisions. Experts suggest that while some high-profile moves have occurred, New York's strong labor market and amenities continue to attract residents and businesses despite political debates.
Kevin O'Leary, known as "Mr. Wonderful" from "Shark Tank," advised real estate investors to avoid developing in New York following a judge's ruling that former President Trump must pay $355 million in punitive damages in a civil fraud case. O'Leary criticized the ruling as an "assault on real estate" and warned that New York's business climate, high taxes, and regulations are driving investors away. He suggested considering incorporating in "winner states" like Florida, Texas, North Dakota, West Virginia, or Oklahoma instead. FOX Business host Charles Payne agreed, noting that $1 trillion in business has already left New York for Florida and Texas due to crime, regulations, and low building occupancy.
The ruling in Donald Trump's civil fraud trial in New York, which could bankrupt him, has financial executives considering an exodus from the state due to concerns about aggressive prosecution tactics and unfavorable business conditions. The state's attorney general, Letitia James, is seen as using her position for political gain, and combined with other factors such as leftist politics and ineffective governance, it has led to a significant outflow of businesses and assets from New York to other states.
The exodus of businesses from Burlington's Church Street, including recent closures of Black Diamond, the Body Shop, and Slate, has raised concerns about the economic health of the downtown area. Factors contributing to the decline include public safety concerns, a shortage of workers, and fewer people working in downtown offices. The upcoming holiday season is seen as critical for the remaining businesses, with hopes that a strong season will encourage them to stay. While new tenants are moving into some empty locations, the city also faces challenges such as labor issues, foot traffic, and theft concerns. The CityPlace project, which will bring new residents to the city, is expected to provide a boost for commerce. However, Burlington also needs to address the growing perception of being an unsafe place, particularly at night.
San Francisco is facing a potential loss of hundreds of millions of dollars per year due to a business exodus triggered by crime, homelessness, and a failure to recover from the COVID-19 pandemic. Top retailers like Nordstrom, H&M, and Gap have withdrawn from the city, and the owner of two major hotels, including the largest in San Francisco, has also announced it will quit the city. The decline in property tax revenue alone could cost nearly $200 million per year, according to a worst-case scenario drawn up by the city's chief accountant.
T-Mobile has closed its flagship store in San Francisco due to "rampant criminal activity," following similar announcements by Saks Off 5th and Nordstrom. San Francisco has been hit by rising crime and a homelessness epidemic, leading to a string of retail closures. Whole Foods temporarily closed a flagship location last month citing safety fears, while a Target store locked up its entire product range due to concerns over "organized retail crime." Small businesses have criticized city officials for failing to tackle the problem, which they say is harming revenues.
Portland residents are warning of a rise in home break-ins as businesses flee the city due to a crime crisis exacerbated by a public defender shortage and a flawed justice system. More than 300 criminal cases, including some related to felony theft, possession of a stolen vehicle, and gun charges, have been dismissed. Residents say the problem is less centered around homelessness and more focused on perpetuating drug addiction. Businesses like Walmart are pulling out of the area, and some residents fear that criminals will turn to home break-ins as a result.
